Question 50
HardOriginal questionA consumer is indifferent between (4 apples, 10 bananas) and (6 apples, 7 bananas). What is his MRS of apples for bananas over this range?
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
He gives up 10 − 7 = 3 bananas for 6 − 4 = 2 more apples.
MRS = 3 ÷ 2 = 1.5 bananas per apple.
Worth noting
0.67 is apples per banana, the inverse.
- Concept
- MRS from two indifferent bundles
- Typical timeTypical
- 100 s
- Your timeYours
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